Konferenzbeitrag
A Theory of Delegated Contracting
Delegated contracting describes a widely observable vertical contractual relationship where a top principal (program designer) hires an intermediary to offer a predesigned screening contract to a downstream agent who should produce a quantity depending on his true marginal cost type. The principal has no direct access to the downstream agent and utilizes budgeting in the sequence of contracts. This paper proposes a general theory of delegated contracting where information acquisition is limited to the (sub-)contract offer stage. To reach delegation proofness, the principal designs information rents accordingly. The solution concept follows the convexity of rent pro le. The paper shows that the optimal contract is fully separating over the subcontracting interval, leading to strictly decreasing output targets.
- Language
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Englisch
- Bibliographic citation
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Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Contracts, Institutions, Tournaments ; No. C12-V1
- Classification
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Wirtschaft
Organizational Behavior; Transaction Costs; Property Rights
Bureaucracy; Administrative Processes in Public Organizations; Corruption
Economics of Regulation
- Event
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Geistige Schöpfung
- (who)
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Gick, Wolfgang
- Event
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Veröffentlichung
- (when)
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2015
- Handle
- Last update
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08.03.2025, 11:58 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Konferenzbeitrag
Associated
- Gick, Wolfgang
Time of origin
- 2015
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Relational Contracting, Repeated Negotiations, and Hold-Up
Incomplete Contracting, Renegotiation, and Expectation-Based Loss Aversion
Can Network Effects Impede Optimal Contracting in Debt Securities?
An Incentive Theory of Matching
A Theory of Economic Disintegration
Toward a theory of monopolistic competition
Towards a Theory of Trade Finance